Home » Finance

What Is The Best Way To Consolidate My Debt?

Sep 13, 2008
The current global financial conditions are beginning to put an enormous strain on the personal finances of millions of ordinary Americans, in particular those who have some form of personal debt. As inflation continues to rise on goods and services and interests rates are kept high, many of us are struggling to keep up to date with the financial commitments that we made a few years ago when it was much easier to obtain cheap and available credit. If this sounds like you, read on to discover what the options are available to you in the current climate.

If you are struggling financially to keep up to date with your repayments then the best option available to you may be to consolidate your debt. Read on to discover the two main types of consolidation loan that is available to you.

There are two types of consolidation available but they are vastly different. The first is consolidation with a loan. Basically, a consolidation loan allows you to collate all of your existing debt under one larger loan. The repayments and the interest may also been much more attractive than some of your existing loan agreements.

They are also worth considering because you will only have to make one repayment each month. This type of consolidation will immediately stop any type of action that might be pending against you such as debt collection, phone calls or bailiffs. It is these kinds of activities that cause the most stress to those people who are unable to meet the repayments of multiple loans and so this is a tremendous benefit.

A consolidation loan will also not adversely affect your credit rating. In fact many money experts have suggested that it may even improve it slightly as the negative marks against your credit rating for some of your debts will be eliminated once you have transferred the debt on to a new loan.

There are a few disadvantages to this type of consolidation. You will need to be approved by a bank or other credit lender in order to benefit from this option. If you have a bad credit history then you may find that you are offered the loan, but the repayments and the interest rate are very high. You will need to ask yourself if this will put you in a better or worse situation over the long term. It is also important to stress that a consolidation loan does not reduce your debt. You are simply reorganizing the debt to make the repayments more manageable.

The second option available is the use of a debt consolidation service. This is the option of agreeing to the help and advice of a professional debt management company, who will on your behalf approach your creditors to try to reduce the repayments that you currently make. In certain circumstances the debt management company may also be able to get some creditors to reduce the overall debt if genuine poverty can be adequately demonstrated.

A debt management company may be the correct option for you if you feel overwhelmed by the number of creditors hassling you for repayments. The service can make this stop and by employing a professional you will get a better response than if you did this yourself. However should you decide to use this option, you need to remember that the company will take a fee as a part of the service and that your credit rating is likely to be negatively affected by this course of action. These companies also usually will only deal with unsecured debt.
About the Author
If you have a ton of bills there a several ways to Consolidate Debt and Eliminate Credit Card Debt. Visit the links above for more information on how to decrease your debt and clean up your credit.
Rating:
Please Rate:
(Average: Not rated)
Views: 170
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources